Financial assets and the odds of divorce

On behalf of The Law Offices of Ronda A. Middleton posted in family law on Monday, October 29, 2018.

Financial problems are a common reason that many couples in California end up filing for divorce. A statistic that may surprise many people is that couples who are financially doing well may be at a greater risk for divorce than couples who are struggling.

A study by the Federal Reserve Board found a correlation between a large difference in credit scores and a couple's odds of getting divorced. Couples with the greatest mismatch faced the greatest likelihood of getting divorced within the first five years. Those who both had high credit scores had the greatest chances of their marriage working out long-term.

When one spouse is a very high earner, the other may not work. Many couples still adhere to a traditional division of labor where the wife does most of the housework and the husband takes care of most of the financial matters. Couples with a high discrepancy in earnings may experience discrepancies over financial matters. In addition to financial differences, high earners may need to be away from home for travel and long hours at the office.

Most lawyers say that they see a decrease in the number of divorces during times of economic recession. Many people may wait until their finances improve to get a divorce.

An attorney with experience in family law may be able to help couples who are facing divorce legal issues like decisions regarding child custody, property division and child support. Once a divorce settlement is finalized, the terms of the agreement can be difficult to change later.

An attorney may be able to help clients with complex divorce issues like uncovering hidden assets, arranging estate valuation and advising clients about how changes in the tax code could affect their divorce settlement. In a high-asset divorce, a judge is more likely to award spousal support if the marriage lasted a long time and one spouse gave up working to take care of the household and children.

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